Revenues of $51.3 million for the fourth quarter and $200.9 million
for the year;

12-month backlog of $167.1 million;

Earnings per diluted share of $0.90 for the quarter and $2.95 for the
year;

Cash provided by operations of $14.7 million for the quarter and $29.0
million for the year;

Quarterly dividend of $0.57 per share, an increase of $0.06 per share;
and

Record cash collections of $56.2 million for the quarter and $189.6
million for the year.

Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider
of healthcare information solutions, today announced results for the
fourth quarter and year ended December 31, 2013.

The Company also announced that its Board of Directors has approved an
increase in the regular quarterly cash dividend of $0.06 to $0.57
(fifty-seven cents) per share, payable on February 28, 2014, to
stockholders of record as of the close of business on February 13, 2014.

Total revenues for the fourth quarter ended December 31, 2013, increased
7% to $51.3 million, compared with total revenues of $47.9 million for
the prior-year fourth quarter. Net income for the quarter ended December
31, 2013, increased 10% to $10.0 million, or $0.90 per diluted share,
compared with $9.1 million, or $0.83 per diluted share, for the quarter
ended December 31, 2012. Cash provided by operations for the fourth
quarter of 2013 was $14.7 million, compared with $14.3 million for the
prior-year fourth quarter. Cash collections for the fourth quarter ended
December 31, 2013, were $56.2 million, compared with cash collections of
$53.2 million for the prior-year fourth quarter.

Total revenues for the year ended December 31, 2013, increased 10% to
$200.9 million, compared with total revenues of $183.3 million for the
prior year. Net income for the year ended December 31, 2013, increased
9% to $32.7 million, or $2.95 per diluted share, compared with
$30.0 million, or $2.71 per diluted share, for the year ended December
31, 2012. Cash provided by operations for 2013 was $29.0 million,
compared with $32.2 million for the prior year. Cash collections for
2013 were $189.6 million, compared with cash collections of
$184.0 million for the prior year.

During 2012, the Company installed systems under contracts for which a
portion of the consideration was to be received and revenue recognized
in subsequent periods upon hospitals successfully achieving Meaningful
Use designation. Although the related system installations were
substantially completed during 2012 and no such contracts were offered
during 2013, the total remaining accumulated unrecognized revenue
related to such contracts as of December 31, 2013, was approximately
$2.7 million.

For 2014, the Company anticipates total revenues of $205.0 million to
$215.0 million and net income of approximately $36.0 million to $38.0
million, or $3.25 to $3.40 per diluted share. CPSI’s 12-month backlog as
of December 31, 2013, was $167.1 million, consisting of $50.9 million in
non-recurring system purchases and $116.2 million in recurring payments
for support, Business Management Services and SAAS contracts. The
backlog amounts exclude amounts to be recognized in subsequent periods
upon hospitals successfully achieving Meaningful Use designation.

A listen-only simulcast and replay of CPSI’s fourth quarter and year-end
2013 conference call will be available on-line at the Company’s website, www.cpsi.com,
on January 31, 2014, beginning at 9:00 a.m. Eastern Time.

About Computer Programs and Systems, Inc.

CPSI
is a leading provider of electronic health records systems for more than
650 community, rural and critical access hospitals and their 12,000
providers. Founded in 1979, the Company is dedicated to meeting the
ever-changing needs of health IT, while optimizing the quality of care
for communities in 45 states and the District of Columbia. CPSI provides
a complete information and patient care system from business office to
bedside combined with comprehensive implementation, training and ongoing
support from our staff of approximately 1,400 healthcare and business
professionals. CPSI’s wholly owned subsidiary, TruBridge,
focuses exclusively on providing business office, consulting and managed
IT services to rural and community healthcare organizations, regardless
of their IT vendor. To join the conversation with CPSI, connect with us
on Facebook,
Twitter
(@cpsiehr) and on the CPSI
blog. For more information, visit www.cpsi.com
or www.trubridge.net.

This press release contains forward-looking statements within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified generally by the use of forward-looking terminology and words
such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,”
“intends,” “plans,” “potential,” “may,” “continue,” “should,” “will” and
words of comparable meaning. Without limiting the generality of the
preceding statement, all statements in this press release relating to
estimated and projected earnings, margins, costs, expenditures, cash
flows, growth rates and future financial results are forward-looking
statements. We caution investors that any such forward-looking
statements are only predictions and are not guarantees of future
performance. Certain risks, uncertainties and other factors may cause
actual results to differ materially from those projected in the
forward-looking statements. Such factors may include: overall business
and economic conditions affecting the healthcare industry; government
regulation of the healthcare and health insurance industries; government
regulation of our products and customers, including changes in
healthcare policy affecting Medicare and Medicaid reimbursement rates
and qualifying technological standards; the potential effects of the
federal healthcare reform legislation enacted in 2010, and implementing
regulations, on the businesses of our hospital customers; the funding
uncertainties associated with and potential expenditures required by the
American Recovery and Reinvestment Act of 2009 in connection with the
adoption of electronic health records; saturation of our target market
and hospital consolidations; changes in customer purchasing priorities,
capital expenditures and demand for information technology systems;
competition with companies that have greater financial, technical and
marketing resources than we have; failure to develop new technology and
products in response to market demands; fluctuations in quarterly
financial performance due to, among other factors, timing of customer
installations; failure of our products to function properly resulting in
claims for medical losses; changes in accounting principles generally
accepted in the United States; breaches of security and viruses in our
systems resulting in customer claims against us and harm to our
reputation; potential intellectual property claims against us; general
economic conditions, including changes in the financial and credit
markets that may affect the availability and cost of credit to us or our
customers; interruptions in our power supply and/or telecommunications
capabilities and other risk factors described from time to time in our
public releases and reports filed with the Securities and Exchange
Commission, including, but not limited to, our most recent Annual Report
on Form 10-K. We also caution investors that the forward-looking
information described herein represents our outlook only as of this
date, and we undertake no obligation to update or revise any
forward-looking statements to reflect events or developments after the
date of this press release.

The following table summarizes cash flow and
free cash flow for the Company:

Three Months Ended

December 31,

Year Ended

December 31,

2013

2012

2013

2012

Cash Flow Information

Net cash provided by operating activities

$

14,725

$

14,252

$

29,047

$

32,207

Net cash used in investing activities

(325

)

4,952

(3,685

)

1,482

Net cash used in financing activities

(5,585

)

(16,122

)

(22,546

)

(31,440

)

Free Cash Flow

Net cash provided by operating activities

$

14,725

$

14,252

$

29,047

$

32,207

Less: Purchases of capital assets

(314

)

(2,039

)

(3,630

)

(4,363

)

Free cash flow

$

14,411

$

12,213

$

25,417

$

27,844

Free cash flow is a non-GAAP financial measure which CPSI defines
as net cash provided by operating activities less purchases of
capital assets. The most directly comparable GAAP financial
measure is net cash provided by operating activities. The Company
believes free cash flow is a useful measure of performance and
uses this measure as an indication of the financial resources of
the Company and its ability to generate cash.